Behaviour: bear, bull or lemming - Lloyd's emerging risks report

Underwriters take risks every day of their lives, yet many are unaware of the subconscious thoughts that are clouding their judgements. Behavioural theory tells us there are many unintended filters which distort the way we think about risk. This report provides a glossary of the key insights from behavioural theorists.

The key findings are:1) Perception of risk drives behaviour.2) Personality affects perception of risk.3) Some groups perceive risk differently to others.4) Human beings often misjudge risk.5) Attitudes to risk depend on how it is presented.6) Emotion is a driver of behaviour.7) Communication of risk is challenging.8) Groups tend to make more extreme decisions than individuals.9) When managing risk, the culture within a firm is critical.10) Behavioural science is highly relevant to emerging risk management.